Asian markets rose on expectations that the U.S. wouldn’t raise interest rates Thursday, even as shares in China took a late-afternoon drop and dragged Hong Kong stocks lower.
In Japan, the Nikkei 225 index leaped 260.67 points, or 1.4%, to 18,432.27,
In Hong Kong, the Hang Seng Index dropped 112.03 points, or 0.5%, from a jump of more than 500 points Wednesday to 21,854.63
In Japan, stocks brushed off Standard & Poor’s downgrade late Wednesday of Japanese government debt, citing the country’s weak growth. S&P is the third of the three major ratings firms to do so.
Earlier Thursday, data showed Japanese exports rising 3.1% on-year in August, missing a forecast for a 4.1% gain. The month saw crippling explosions in the Chinese port city of Tianjin, the production hub of Toyota Motor Corp. in China. The blasts are believed to have affected Japan’s already sluggish exports to China.
Foreign investors sold a net 1.4 trillion yen ($12 billion U.S.) of Japanese stocks last week, the largest amount since data from Japan’s finance ministry became available in 2005.
Late Wednesday, Standard & Poor’s downgraded its rating of Japanese government debt, citing weak growth. S&P is the third of the three major ratings firms to do so
Earlier Thursday, data showed Japanese exports rising 3.1% on-year in August, missing a 4.1% forecast. The month saw crippling explosions in the Chinese port city of Tianjin, the production hub of Toyota Motor Corp. in China. The blasts are believed to have affected Japan’s already sluggish exports to China.
Foreign investors sold a net 1.4 trillion yen ($12 billion U.S.) of Japanese stocks last week, the largest amount since data from Japan’s finance ministry became available in 2005.
Currencies in the region were also recovering from a selloff, especially from last month when worries about a slowdown in China and a weaker yuan sparked global volatility.
On Thursday, the South Korean won stayed at its highest level against the U.S. dollar since mid-August. The Australian dollar and Singapore dollar also remained at their strongest since late last month.
CHINA
The CSI 300 in Shanghai sank 72.25 points, or 2.2%, to 3,237
Beijing-backed funds, which are known to operate in the afternoon, didn’t appear to be present in the domestic market, sparking sales by investors. Chinese markets have seen frequent late-session surges or drops recently.
China’s market also continues to be plagued by uncertainty over how aggressively the government wants to clamp down on illegal trading and what it deems "abnormal" practices.
Late Wednesday, China’s police said it was investigating Zhang Yujun, assistant chairman of the China Securities Regulatory Commission, for suspected disciplinary violations, according to Xinhua.
In other markets
In Korea, the Kospi index inched up 1.04 points, or 0.1%, to 1,976.49
In Singapore, the Straits Times Index gained 27.07 points, or 0.9%, to 2,895.81
In Taiwan, the Taiex index hiked 112.21 points, or 1.4%, to 8,445.50
The NZX 50 picked up 26.26 points, or 0.5%, to 5,694.23
The ASX 200 Index advanced 47.96 points, or 0.9%, to 5,146.82
